Who qualifies for Tax Free Sales?

You can buy a car tax-free, so long as you remove if from the UK within two months of registration, if going to another EU country, (Customs form VAT 411), or within six months if going to a country outside of the EU, (Customs form VAT 410). Some manufacturers also give a discount to certain categories of customer.

Note: Ford not only give a very generous military discount, but they do not add a UK delivery charge. (Some manufacturers charge £500 -£600 for UK delivery).

Tax-free cars are normally registered when you return a completed customs form, which we will send you. If your car is being shipped outside of the EU, without you collecting it from UK dealership, it would be classed as a Direct Export, in which case, no customs form is required. However, if brought back into the UK, it would be regarded as an import. (Cars for use in another EU country would be UK registered on a "pink log book", and not classed as an import if brought back to the UK).

Tax-paid cars for UK use:

If a car is purchased in the UK with no intention to export it, UK VATof 20% would be payable, and the car would be classed as tax-paid. You would also be required to pay UK road tax (VED), if applicable. Some manufacturers will also extend their Military/Diplomatic discount to customers buying tax-paid cars, and again, Ford are amongst the most generous with tax-paid discounts..

British Forces on Continental postings

Due to their Privileged Status, British Forces do not pay taxes provided they are on a minimum six months posting. At the end of this posting they may bring the vehicle back to the UK without there being any VAT liability, providing that the rules governing a posting to that country have been observed.. Please note that as this is the individual's entitlement, only they or their spouse/partner can register the vehicle upon their return to the UK.

When re-registering a car being brought back into the UK, please see below.

As a returning member of the NATO forces/civilian staff, can I claim relief from VAT when I bring my NMT back to the UK?

If you meet local requirements you can claim relief at the end of your tour on permanent posting back to the UK. You must be in possession of Form BFG NOVA1 if returning from Germany or Form BFC 414 from Cyprus, in order to register your vehicle.

These forms are available from (respectively):

Customs and Immigration
British Forces Liaison
GERMANY, BFPO 40

or

SBA Customs
RAF Akrotiri
BFPO 57

If you are returning from any other Member State you must provide HMRC with evidence to show that the host authority relieved the tax. If returning with a land vehicle use form NOVA1, if returning with a ship/aircraft use VAT Form 415.

Germany posting

BFG has its own set of rules, which you should familiarise yourself with if they apply to you. For example, you need to BFG register your new car within 45 days of arriving in Germany, and retain the vehicle for a minimum of 12 months from date of BFG registration, or face a 5 yrs ban on buying another tax-free car.

Cyprus posting

A reliable car is a must in Cyprus, and unless you buy a new, tax-free car, you will end up paying the local dealers every month for the use of an old wreck.

We can supply a brand-new car for a similar monthly repayment, so you really should look into what we can offer. We help you with everything ; sourcing your car through a UK dealership at a great price, financing through a UK finance company, shipping and insurance (Marine insurance with NO excess), collection from Limassol Port,

Cyprus customs and Cyprus registration. ( If you are in Cyprus, phone Stan Bateman on 97673576 for a no-obligation quote).

Diplomatic and Consular staff

Individuals and Legislations posted to the UK who, provided they meet the criteria laid down by the Foreign and Commonwealth Office Privilege Department, may purchase a vehicle without VAT or Road Tax for the duration of their stay in the UK. Subsequent disposal in the UK unless it is to another privileged individual will mean payment of VAT on the residual value.

Foreign Servicemen

If you are posted to the UK you may be entitled to purchase a vehicle free of VAT and Road Tax for the duration of your stay. Subsequent disposal of the vehicle in the UK to anyone other than another privileged individual will result in VAT having to be paid. Check with your Admin Office to see if you qualify. They will give you a Form C941.

Individuals wishing to purchase a tax free vehicle for shipment to a country outside of the EU. They are entitled to usage of six months in the UK prior to export if they so wish. Companies wishing to export vehicles abroad are also entitled to do this but cannot use the vehicle in the UK beforehand.

This is the method whereby an individual or company can purchase a tax-free vehicle in one Member State, and transfer it to their State of Residence. (This residence may be temporary, but must be of at least six months duration). Duty would then be payable in the State of Residence, unless exempt from doing so.